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A transport company inquired whether the leasing of its machinery (forklifts, pallet trucks) could be considered an ancillary activity. The DGT ruled that if the rental is carried out as part of an economic activity, there is no obligation to withhold tax.
This ruling clarifies that machinery rentals integrated into a business's core or ancillary economic activities are not subject to withholding tax, provided they meet the criteria for business income rather than passive capital income.
The tax team reviews your specific situation.
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